The Bank of New York Company, Inc. Reports 12% Increase in First Quarter Earnings Per Share; Positive Operating Leverage and Strong Growth in Securities Servicing Revenue and Net Interest Income

Performance Highlights

-- Positive operating leverage over year-ago and sequential periods.

-- Securities servicing fees up 11% versus the year-ago quarter. The growth was led by strong performance in issuer services, broker-dealer services, and execution and clearing services.

-- Net interest income was up 7% over last year, reflecting growth in liquidity from the Company's core servicing businesses.

-- Foreign exchange and other trading revenues were up 20% from the year-ago quarter.

-- Private banking and asset management revenues were up 16% from the year-ago quarter reflecting both organic growth and the acquisition of Alcentra Group Limited and Urdang Capital Management.

On April 8, 2006, the Company announced a definitive agreementwith JPMorgan Chase to acquire its corporate trust business, withJPMorgan Chase acquiring the Company's retail banking and regionalmiddle-market businesses. The transaction will strengthen theCompany's leadership position in corporate trust both in the U.S. andinternationally, serving a combined client base with $8 trillion intotal debt outstanding in 20 countries.

Chairman and Chief Executive Officer Thomas A. Renyi stated, "Weare pleased with our performance for the quarter, which includesdouble-digit revenue growth and positive operating leverage. Thisreflects the earnings power and momentum of the growth businesses thatform the core of our Company.

"Our agreement with JPMorgan Chase is another significant step inadvancing our strategic transformation as a leader in securitiesservicing, asset management and private banking. We are unlocking thevalue of our retail franchise to invest in strengthening ourleadership position in corporate trust, a business with attractiverevenue dynamics and excellent growth prospects. In doing so, we arefurther concentrating our capital and resources on the higher-growth,higher-margin businesses where we have scale, skill and competitiveadvantage."
SECURITIES SERVICING FEES

Percent Inc/(Dec)
------------------
1Q06 vs. 1Q06 vs.
(In millions) 1Q06 4Q05 1Q05 4Q05 1Q05
----------------------------------------------------------------------

Execution and Clearing Services $339 $321 $293 6 % 16 %
Issuer Services 154 171 139 (10) 11
Investor Services 277 264 263 5 5
Broker-Dealer Services 61 58 55 5 11
---------------
Securities Servicing Fees $831 $814 $750 2 11
===============

Double-digit securities servicing fee growth over the firstquarter of 2005 reflects strong performance within issuer services,broker-dealer services, and execution and clearing services. On asequential-quarter basis, fees were moderately higher, reflectingstrong growth in execution and clearing services, broker-dealerservices and investor services, partially offset by seasonally sloweractivity in issuer services.

Execution and clearing fees increased from the first quarter of2005, reflecting growth in value-added fees at Pershing and strongertransition management and cross-border trading activity in executionservices. The year-over-year increase also reflects the additionalrevenues from the Lynch, Jones & Ryan acquisition and higher overallequity market volumes, partially offset by the loss of a significantPershing customer. Execution and clearing fee growth was strongsequentially, reflecting higher commissions and fee-based services atPershing, and higher cross-border trading volumes in the executionbusiness. The execution and clearing businesses include institutionalagency brokerage, electronic trading, transition management services,independent research and, through Pershing, correspondent clearingservices such as clearing, execution, financing, and custody forintroducing broker-dealers.

Issuer services fees increased versus the year-ago period due tohigher transactional activity within ADRs and strong growth instructured and global trust products revenues within Corporate Trust.The sequential quarter decrease from the strong fourth quarter of 2005primarily reflects seasonally lower depositary receipt revenue.

Investor services fees increased from the year-ago quarter due tohigher volumes within securities lending and higher custody fees.Sequential performance reflects the same factors as year-over-year.Investor services includes global fund services, global custody,securities lending, global liquidity services and outsourcing.

Broker-dealer services fees improved versus the year-ago andsequential periods as a result of increased domestic and globalcollateral management fees due to strong cross-border activity betweenthe U.S. and Europe and higher values in global markets.
NONINTEREST INCOME

Percent Inc/(Dec)
------------------
1Q06 vs. 1Q06 vs.
(In millions) 1Q06 4Q05 1Q05 4Q05 1Q05
----------------------------------------------------------------------
Servicing Fees
Securities $ 831 $ 814 $ 750 2 % 11 %
Global Payment Services 70 68 75 3 (7)
---------------------
901 882 825 2 9
Private Banking and Asset
Management Fees 141 128 122 10 16
Service Charges and Fees 89 94 92 (5) (3)
Foreign Exchange and Other
Trading Activities 115 98 96 17 20
Securities Gains 17 18 12 (6) 42
Other 69 53 31 30 123
---------------------
Total Noninterest Income $1,332 $1,273 $1,178 5 13
=====================

The increase in noninterest income versus the first quarter of2005 reflects positive revenue trends in securities servicing, foreignexchange and other trading, private banking and asset management, andother income. The sequential increase in noninterest income primarilyreflects increases in foreign exchange and other trading, privatebanking and asset management, and other income.

Global payment services fees decreased from the first quarter of2005 but increased moderately on a sequential-quarter basis. Theyear-over-year decline reflects customers choosing to pay with highercompensating balances, which benefits net interest income. Thesequential quarter increase reflects growth from U.S. financialinstitutions. On an invoiced services basis, total revenue was up 6%over the first quarter of 2005 and 1% on a sequential-quarter basis.

Private banking and asset management fees increased significantlyfrom the first quarter of 2005 and on a sequential-quarter basisprimarily due to the acquisition of Alcentra Group Limited on January3, 2006 and the acquisition of Urdang Capital Management on March 2,2006, as well as higher fees in private banking. Total assets undermanagement for these activities were $113 billion, up from $105billion at March 31, 2005 and December 31, 2005.

Service charges and fees were down from the first quarter of 2005and the fourth quarter of 2005. The year-over-year decline reflectslower underwriting fees. The sequential quarter decrease is due tolower syndication fees.

Foreign exchange and other trading revenues were up significantlyfrom the first quarter of 2005 and on a sequential-quarter basis.Foreign exchange was up from the first quarter of 2005 andsequentially due to higher volumes fueled by cross-border investment,particularly in emerging markets. On a year-over-year basis, othertrading decreased slightly reflecting a decline in interest ratederivative activity and lower trading revenues at Pershing. On asequential-quarter basis, other trading increased primarily as aresult of improved performance in fixed income trading.

Securities gains in the first quarter were up $5 million from theyear-ago quarter and down slightly on a sequential-quarter basis. Thegains in the quarter were primarily attributable to the sponsor fundportfolio.

Other noninterest income increased versus the first quarter of2005 and the fourth quarter of 2005. The first quarter of 2006includes a pre-tax gain of $31 million related to the conversion ofthe Company's New York Stock Exchange seats into cash and shares ofNYSE. The fourth quarter of 2005 included the sale of a building for a$10 million pre-tax gain and four New York Stock Exchange seats for a$6 million pre-tax gain. During the first quarter of 2006, the higherthan anticipated gain on the NYSE seats was partially offset byseveral items, including: the impact of the loss of a major Pershingcustomer ($6 million) for which the Company is pursuing a terminationfee; a final adjustment to the Company's reserve position with theFederal Reserve ($6 million); and severance tied to relocationinitiatives ($6 million).
NET INTEREST INCOME

Percent
Inc/
(Dec)
----------
1Q06 1Q06
vs. vs.
(Dollars in millions) 1Q06 4Q05 1Q05 4Q05 1Q05
----------------------------------------------------------------------
Net Interest Income $488 $492 $455 (1)% 7 %

Tax Equivalent Adjustment* 7 7 7
-----------------
Net Interest Income on a
Tax Equivalent Basis $495 $499 $462 (1) 7
=================

Net Interest Rate Spread 1.73% 1.71% 1.94%

Net Yield on Interest Earning Assets 2.35 2.35 2.36

* See Note (1).

Net interest income increased on a year-over-year quarterly basisreflecting higher earning assets and the higher value of interest-freebalances in a rising rate environment. Net interest income decreasedon a sequential-quarter basis reflecting a decline in interest earningassets and fewer days in the quarter. The first quarter of 2006included a $6 million impact of a cumulative adjustment in theCompany's reserve position with the Federal Reserve, which concludesthis matter, while the fourth quarter of 2005 reflected $8 millionrelated to this item.
NONINTEREST EXPENSE AND INCOME TAXES

Percent
Inc/(Dec)
-----------
1Q06 1Q06
vs. vs.
(In millions) 1Q06 4Q05 1Q05 4Q05 1Q05
----------------------------------------------------------------------
Salaries and Employee Benefits $ 668 $ 647 $ 618 3 % 8 %
Net Occupancy 88 84 78 5 13
Furniture and Equipment 53 53 52 - 2
Clearing 50 50 46 - 9
Sub-custodian Expenses 34 24 23 42 48
Software 56 53 53 6 6
Communications 27 26 23 4 17
Amortization of Intangibles 13 12 8 8 63
Other 189 199 176 (5) 7
---------------------
Total Noninterest Expense $1,178 $1,148 $1,077 3 9
=====================

Noninterest expense was up compared with the first quarter of 2005and the fourth quarter of 2005. The increase versus the year-agoquarter reflects increased staffing costs associated with new businessand acquisitions, as well as higher pension expenses. Occupancy was upreflecting acquisitions and higher business continuity expenses.

Relative to the year-ago quarter, salaries rose 6% as tightheadcount control and reengineering and relocation projects offset theimpact of growth related to business wins, and acquisitions, as wellas the impact of severance and additional legal and compliancepersonnel. Severance expense, which was largely related to relocationinitiatives, was $6 million in the first quarter of 2006. Benefitexpense increased due to higher pension and medical costs, as well ashigher incentives tied to growth in revenues. Salaries and employeebenefits expense for the first quarter increased on asequential-quarter basis, reflecting higher seasonal social securityexpense, higher pension expenses reflecting the new 2006 assumptions,and increased expenses associated with acquisitions.

Occupancy expenses were up on a year-over-year quarter basisreflecting the costs associated with the Company's new out-of-regiondata center in the mid-south region of the U.S. and the growth centerin Manchester, England. On a sequential-quarter basis, occupancyexpenses were up 5%, primarily reflecting acquisitions.

Other expenses were higher compared with the first quarter of 2005reflecting higher costs for advertising, travel and entertainment, aswell as vendor services related expenses associated with businessgrowth. On a sequential-quarter basis, other expenses in the firstquarter of 2006 decreased due to lower legal and Depository TrustCompany expense.

The effective tax rate for the first quarter of 2006 was 33.7%,compared to 33.1% in the first quarter of 2005 and 33.3% in the fourthquarter of 2005. The increases primarily reflect lower expectedSection 29 tax credits.
CREDIT LOSS PROVISION AND NET CHARGE-OFFS

(In millions) 1Q06 4Q05 1Q05
------------------
Provision $5 $10 $(10)
------------------

Net Charge-offs:
Commercial $1 $(139) $(3)
Foreign 2 (1) -
Regional Commercial 1 (3) (2)
Consumer (8) (8) (5)
------------------
Total $(4) $(151) $(10)
==================

The sequential decline in the provision reflects a decline incharge-offs and a decline in nonperforming loans.

During the fourth quarter of 2005 the Company charged-off $140million of leases with two domestic bankrupt airline customers.
LOANS

(Dollars in millions) March 31, December 31, March 31,
2006 2005 2005
------------ ------------ ------------
Margin Loans $ 5,312 $ 6,089 $ 6,038
Non-Margin Loans 34,742 34,637 32,726
--------------------------------------
Total Loans $40,054 $40,726 $38,764
======================================

Allowance for Loan Losses $419 $411 $583
Allowance for Lending-Related
Commitments 147 154 133
--------------------------------------
Total Allowance for
Credit Losses $566 $565 $716
======================================

Allowance for Loan Losses As a
Percent of Total Loans 1.05 % 1.01 % 1.50 %
Allowance for Loan Losses As a
Percent of Non-Margin Loans 1.21 1.19 1.78
Total Allowance for Credit
Losses As a Percent of
Total Loans 1.41 1.39 1.85
Total Allowance for Credit
Losses As a Percent of
Non-Margin Loans 1.63 1.63 2.19

NONPERFORMING ASSETS

Change
3/31/2006 vs. Percent
(Dollars in millions) 3/31/2006 12/31/2005 12/31/2005 Inc/(Dec)
---------------------------------------------
Loans:
Commercial $16 $17 $(1) (6)%
Foreign 13 14 (1) (7)
Other 29 35 (6) (17)
------------------------------------
Total Nonperforming
Loans 58 66 (8) (12)
Other Assets Owned 8 13 (5) (38)
------------------------------------
Total Nonperforming
Assets $66 $79 $(13) (16)
====================================

Nonperforming Assets
Ratio 0.2 % 0.2 %

Allowance for Loan
Losses/Nonperforming
Loans 720.6 629.7
Allowance for Loan
Losses/Nonperforming
Assets 635.2 524.0
Total Allowance for
Credit Losses/
Nonperforming Loans 974.1 865.4
Total Allowance for
Credit Losses/
Nonperforming Assets 858.8 720.2

The sequential quarter decrease in nonperforming assets primarily
reflects the sale of aircraft.

OTHER DEVELOPMENTS

On January 3, 2006, the Company acquired Alcentra Group Limited,an international asset management group focused on managing funds thatinvest in non-investment grade debt. Alcentra's management team willretain a 20 percent interest. Alcentra has operations in London andLos Angeles and currently manages 15 different investment funds withover $6.2 billion of assets.

On March 2, 2006, the Company acquired Urdang Capital Management,a real estate investment management firm that manages approximately$3.0 billion in direct investments and portfolios of REIT securities.

As previously noted, the Company entered into a definitiveagreement to sell its retail and regional middle-market businesses toJPMorgan Chase for $3.1 billion with a premium of $2.3 billion.JPMorgan Chase will sell its corporate trust business to the Companyfor $2.8 billion with a premium of $2.15 billion. The difference inpremiums results in a net cash payment of $150 million to the Company.There is also a contingent payment of up to $50 million to the Companytied to customer retention.

The transaction further increases the Company's focus on thesecurities services and wealth management businesses that have fueledthe Company's growth in recent years and that are at the core of itslong-term business strategy.

The transaction has been approved by each company's board ofdirectors and is expected to be completed late in the third quarter orduring the fourth quarter of 2006, subject to regulatory approvals.The Company expects to record an after-tax gain of $1.3 billion and toincur after-tax charges of $90-120 million related to the acquisition.The transaction is expected to be dilutive to GAAP earnings per sharethrough 2009 (4.5 percent in 2007 to 1.5 percent in 2009), but will beaccretive to cash earnings per share in 2009 when cost savings arefully phased in.

JPMorgan Chase's corporate trust business comprises issuesrepresenting $5 trillion in total debt outstanding. It has 2,400employees in more than 40 locations globally. The Company's corporatetrust business comprises issues representing $3 trillion in total debtoutstanding. It has 1,300 employees in 25 locations globally.

The Company's retail bank consists of 338 branches in thetri-state region, serving approximately 700,000 consumer householdsand small businesses with $14.5 billion in deposits and $15.4 billionin assets. The Company's regional middle-market businesses providefinancing, banking and treasury services for middle market clients,serving more than 2,000 clients in the tri-state region. Together, theunits have 4,000 employees located in New York, New Jersey,Connecticut and Delaware.

During the first quarter of 2006, the Company repurchased 0.9million shares of its common stock in the open market and throughemployee benefit plans. The Company also repurchased 1.5 millionshares of its common stock in February at an initial price of $34.31through an accelerated share repurchase program.

CONFERENCE CALL INFORMATION

Thomas A. Renyi, chairman and chief executive officer, and BruceW. Van Saun, vice chairman and chief financial officer, will reviewthe quarterly results in a live conference call and audio webcasttoday at 8:00 a.m. ET.

The presentation will be accessible from the Company's website at

-- www.bankofny.com/earnings and

-- By telephone at (888) 677-2456 within the United States or (517) 623-4161 internationally.

-- Passcode is "The Bank of New York."

-- Replay of the call will be available through the Company's website and also by telephone at (800) 216-4454 within the United States or (402) 220-3883 internationally.

The Bank of New York Company, Inc. (NYSE: BK) is a global leaderin providing a comprehensive array of services that enableinstitutions and individuals to move and manage their financial assetsin more than 100 markets worldwide. The Company has a long traditionof collaborating with clients to deliver innovative solutions throughits core competencies: institutional services, private banking, andasset management. The Company's extensive global client base includesa broad range of leading financial institutions, corporations,government entities, endowments and foundations. Its principalsubsidiary, The Bank of New York, founded in 1784, is the oldest bankin the United States and has consistently played a prominent role inthe evolution of financial markets worldwide. Additional informationis available at www.bankofny.com.
THE BANK OF NEW YORK COMPANY, INC.
Financial Highlights
(Dollars in millions, except per share amounts)
(Unaudited)

March 31, December 31, March 31,
2006 2005 2005
------------ ------------ ------------
Revenue $2,330 $2,230 $1,904
Tax Equivalent Adjustment 7 7 7
Revenue (tax equivalent basis) 2,337 2,237 1,911

Net Income 422 405 379
Basic EPS 0.55 0.53 0.49
Diluted EPS 0.55 0.53 0.49
Cash Dividends Per Share 0.21 0.21 0.20

Return on Average Common
Shareholders' Equity 17.31% 16.57% 16.52%
Return on Average Assets 1.61 1.53 1.55

Efficiency Ratio 65.1 65.5 66.2

Assets $103,611 $102,074 $96,537
Loans 40,054 40,726 38,764
Securities 27,288 27,326 23,907
Deposits - Domestic 35,175 37,374 33,634
- Foreign 29,549 27,050 25,328
Long-Term Debt 8,309 7,817 7,389
Common Shareholders' Equity 10,101 9,876 9,335

Common Shareholders' Equity
Per Share $13.09 $12.79 $12.02
Market Value Per Share of
Common Stock 36.04 31.85 29.05

Allowance for Loan Losses as
a Percent of Total Loans 1.05% 1.01% 1.50%
Allowance for Loan Losses as
a Percent of Non-Margin Loans 1.21 1.19 1.78
Total Allowance for Credit
Losses as a Percent of
Total Loans 1.41 1.39 1.85
Total Allowance for Credit
Losses as a Percent of
Non-Margin Loans 1.63 1.63 2.19

Tier 1 Capital Ratio 8.24 8.38 8.13
Total Capital Ratio 12.38 12.48 12.54
Leverage Ratio 6.51 6.60 6.56
Tangible Common Equity Ratio 5.42 5.58 5.48

Employees 23,500 23,451 23,160

Assets Under Custody -
Estimated (In trillions)
-------------------------
Assets Under Custody $11.3 $10.9 $9.9
Equity Securities 33% 32% 34%
Fixed Income Securities 67 68 66
Cross-Border Assets
Under Custody $3.7 $3.4 $2.8

Assets Under Management -
Estimated (In billions)
-------------------------
Total Assets Under Management 173 155 150
Asset Management Sector 65% 69% 70%
Equity Securities 21% 24% 25%
Fixed Income
Securities 12 14 14
Alternative
Investments 15 10 10
Liquid Assets 17 21 21
Foreign Exchange Overlay 6 6 6
Securities Lending Short-
term Investment Funds 29 25 24

Notes:

(1) A number of amounts related to net interest income arepresented on a "tax equivalent basis". The Company believes that thispresentation provides comparability of net interest income arisingfrom both taxable and tax-exempt sources and is consistent withindustry standards.

(2) Operating leverage is measured by comparing the rate ofincrease in revenue to the rate of increase in expenses. The chartbelow shows the computation of operating leverage.
Operating Leverage

(Dollars in millions) 1Q 2006 1Q 2005 % Change
------- ------- ---------
Noninterest Income $1,332 $1,178 13.1 %
Net Interest Income 488 455 7.3
Total Revenue 1,820 1,633 11.5
Total Expense 1,178 1,077 9.4
Operating Leverage 2.1 %
========

(Dollars in millions) 1Q 2006 4Q 2005 % Change
------- ------- ---------
Noninterest Income $1,332 $1,273 4.6 %
Net Interest Income 488 492 (0.8)
Total Revenue 1,820 1,765 3.1
Total Expense 1,178 1,148 2.6
Operating Leverage 0.5 %
========

FORWARD LOOKING STATEMENTS

All statements in this press release other than statements ofhistorical fact are forward looking statements including, among otherthings, projections with respect to revenue and earnings and theCompany's plans and objectives and as such are subject to risks anduncertainties that could cause actual results to differ materiallyfrom those expressed in the forward looking statements. These includelower than expected performance or higher than expected costs inconnection with acquisitions and integration of acquired businesses,the level of capital market and trading activity, changes in customercredit quality, market performance, the effects of capitalreallocation, portfolio performance, changes in regulatoryexpectations and standards, ultimate differences from managementprojections or market forecasts, the actions that management couldtake in response to these changes and other factors described underthe heading "Forward Looking Statements and Risk Factors That CouldAffect Future Results" in the Company's 2005 Form 10-K which has beenfiled with the SEC and is available at the SEC's website(www.sec.gov).

Forward looking statements speak only as of the date they aremade. The Company will not update forward looking statements toreflect factual assumptions, circumstances or events that have changedafter a forward looking statement was made.

(Financial highlights and detailed financial statements areattached.)
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
(Unaudited)

For the three Percent
months ended Inc/
March 31, (Dec)
2006 2005
--------- --------- ---------

Interest Income
---------------
Loans $ 441 $ 335 32%
Margin loans 77 55 40
Securities
Taxable 298 207 44
Exempt from Federal Income Taxes 10 9 11
--------- ---------

308 216 43
Deposits in Banks 86 71 21
Federal Funds Sold and Securities
Purchased Under Resale Agreements 35 27 30
Trading Assets 51 22 132
--------- ---------
Total Interest Income 998 726 37
--------- ---------

Interest Expense
----------------
Deposits 334 184 82
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 20 6 233
Other Borrowed Funds 20 7 186
Customer Payables 40 25 60
Long-Term Debt 96 49 96
--------- ---------
Total Interest Expense 510 271 88
--------- ---------
Net Interest Income 488 455 7
-------------------
Provision for Credit Losses 5 (10)
--------- ---------

Net Interest Income After Provision for
Credit Losses 483 465 4
--------- ---------

Noninterest Income
------------------
Servicing Fees
Securities 831 750 11
Global Payment Services 70 75 (7)
--------- ---------
901 825 9
Private Banking and
Asset Management Fees 141 122 16
Service Charges and Fees 89 92 (3)
Foreign Exchange and
Other Trading Activities 115 96 20
Securities Gains 17 12 42
Other 69 31 123
--------- ---------
Total Noninterest Income 1,332 1,178 13
--------- ---------

Noninterest Expense
-------------------
Salaries and Employee Benefits 668 618 8
Net Occupancy 88 78 13
Furniture and Equipment 53 52 2
Clearing 50 46 9
Sub-custodian Expenses 34 23 48
Software 56 53 6
Communications 27 23 17
Amortization of Intangibles 13 8 63
Other 189 176 7
--------- ---------
Total Noninterest Expense 1,178 1,077 9
--------- ---------
Income Before Income Taxes 637 566 13
Income Taxes 215 187 15
--------- ---------
Net Income $ 422 $ 379 11
---------- ========= =========

Per Common Share Data:
----------------------
Basic Earnings $ 0.55 $ 0.49 12
Diluted Earnings 0.55 0.49 12
Cash Dividends Paid 0.21 0.20 5
Diluted Shares Outstanding 774 779 (1)

THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)

March 31, 2006 December 31, 2005
----------------- -----------------
Assets
------
Cash and Due from Banks $ 3,408 $ 3,515
Interest-Bearing Deposits in Banks 7,635 8,644
Securities
Held-to-Maturity (fair value of
$2,123 in 2006 and $1,951 in
2005) 2,165 1,977
Available-for-Sale 25,123 25,349
----------------- -----------------
Total Securities 27,288 27,326
Trading Assets at Fair Value 7,129 5,930
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,781 2,425
Loans (less allowance for loan
losses of $419 in 2006 and $411
in 2005) 39,635 40,315
Premises and Equipment 1,059 1,060
Due from Customers on Acceptances 272 233
Accrued Interest Receivable 378 391
Goodwill 3,848 3,619
Intangible Assets 896 811
Other Assets 7,282 7,805
----------------- -----------------
Total Assets $ 103,611 $ 102,074
================= =================
Liabilities and
Shareholders' Equity
---------------------
Deposits
Noninterest-Bearing (principally
domestic offices) $ 16,639 $ 18,236
Interest-Bearing
Domestic Offices 18,863 19,522
Foreign Offices 29,222 26,666
----------------- -----------------
Total Deposits 64,724 64,424
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 903 834
Trading Liabilities 2,358 2,401
Payables to Customers and
Broker-Dealers 7,556 8,623
Other Borrowed Funds 1,158 860
Acceptances Outstanding 276 235
Accrued Taxes and Other Expenses 3,676 4,124
Accrued Interest Payable 171 172
Other Liabilities (including
allowance for lending-related
commitments of $147 in 2006 and
$154 in 2005) 4,379 2,708
Long-Term Debt 8,309 7,817
----------------- -----------------
Total Liabilities 93,510 92,198
----------------- -----------------

Shareholders' Equity
Common Stock-par value $7.50 per
share, authorized 2,400,000,000
shares, issued 1,047,597,230
shares in 2006 and 1,044,994,517
shares in 2005 7,857 7,838
Additional Capital 1,904 1,826
Retained Earnings 7,347 7,089
Accumulated Other
Comprehensive Income (189) (134)
----------------- -----------------
16,919 16,619
Less: Treasury Stock (275,833,078
shares in 2006 and
273,662,218 shares in
2005), at cost 6,811 6,736
Loan to ESOP (203,507
shares in 2006 and
203,507 shares in
2005), at cost 7 7
----------------- -----------------
Total Shareholders' Equity 10,101 9,876
----------------- -----------------
Total Liabilities and
Shareholders' Equity $ 103,611 $ 102,074
================= =================

----------------------------------------------------------------------
Note: The balance sheet at December 31, 2005 has been derived from the
audited financial statements at that date.

THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
(Preliminary)
(Dollars in millions)

For the three months
ended March 31, 2006
---------------------------
Average Average
Balance Interest Rate
--------- -------- --------
ASSETS
------
Interest-Bearing
Deposits in Banks
(primarily foreign) $9,624 $86 3.61%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 3,518 35 4.05
Margin Loans 5,655 77 5.54
Loans
Domestic Offices 22,984 298 5.23
Foreign Offices 10,965 143 5.30
--------- --------
Non-Margin Loans 33,949 441 5.26
--------- --------
Securities
U.S. Government Obligations 225 2 4.22
U.S. Government Agency Obligations 3,953 44 4.45
Obligations of States and
Political Subdivisions 227 4 6.66
Other Securities 22,678 265 4.66
Trading Securities 4,714 51 4.42
--------- --------
Total Securities 31,797 366 4.61
--------- --------
Total Interest-Earning Assets 84,543 1,005 4.79%
--------
Allowance for Credit Losses (415)
Cash and Due from Banks 4,881
Other Assets 17,124
---------
TOTAL ASSETS $106,133
=========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $6,025 $32 2.14%
Savings 8,123 31 1.56
Certificates of Deposit
$100,000 & Over 4,258 48 4.58
Other Time Deposits 1,623 15 3.65
Foreign Offices 30,220 208 2.80
--------- --------
Total Interest-Bearing Deposits 50,249 334 2.70
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 1,966 20 4.19
Other Borrowed Funds 1,980 20 4.02
Payables to Customers and
Broker-Dealers 5,231 40 3.10
Long-Term Debt 8,011 96 4.81
--------- --------
Total Interest-Bearing Liabilities 67,437 510 3.06%
--------
Noninterest-Bearing Deposits 15,391
Other Liabilities 13,417
Common Shareholders' Equity 9,888
---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $106,133
=========
Net Interest Earnings
and Interest Rate Spread $495 1.73%
======== ========
Net Yield on Interest-Earning Assets 2.35%
========

For the three months
ended March 31, 2005
---------------------------
Average Average
Balance Interest Rate
-------- --------- -------
ASSETS
------
Interest-Bearing
Deposits in Banks
(primarily foreign) $9,824 $71 2.95%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,816 27 2.31
Margin Loans 6,407 55 3.46
Loans
Domestic Offices 22,135 239 4.38
Foreign Offices 10,302 96 3.76
-------- ---------
Non-Margin Loans 32,437 335 4.19
-------- ---------
Securities
U.S. Government Obligations 358 3 3.04
U.S. Government Agency Obligations 3,302 31 3.74
Obligations of States and
Political Subdivisions 199 4 7.34
Other Securities 19,681 185 3.77
Trading Securities 2,464 22 3.60
-------- ---------
Total Securities 26,004 245 3.77
-------- ---------
Total Interest-Earning Assets 79,488 733 3.74%
-------- ---------
Allowance for Credit Losses (589)
Cash and Due from Banks 4,166
Other Assets 16,177
--------
TOTAL ASSETS $99,242
========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $6,915 $21 1.25%
Savings 8,901 21 0.94
Certificates of Deposit
$100,000 & Over 2,880 18 2.57
Other Time Deposits 899 4 1.76
Foreign Offices 25,464 120 1.92
-------- ---------
Total Interest-Bearing Deposits 45,059 184 1.66
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 1,390 6 1.84
Other Borrowed Funds 1,825 7 1.54
Payables to Customers and
Broker-Dealers 6,385 25 1.57
Long-Term Debt 6,605 49 2.98
-------- ---------
Total Interest-Bearing Liabilities 61,264 271 1.80%
-------- ---------
Noninterest-Bearing Deposits 15,520
Other Liabilities 13,158
Common Shareholders' Equity 9,300
--------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $99,242
========
Net Interest Earnings
and Interest Rate Spread $462 1.94%
========= ========
Net Yield on Interest-Earning Assets 2.36%
========